Where Will Lockheed Martin Stock Be in 10 Years?

Lockheed Martin Corporation (NYSE:LMT) is doing very well and making great progress with its 21st Century Security® strategy. The bold plan concentrates on three main initiatives that aim to boost the company’s role in the defense and aerospace industries.

The first initiative focuses on making Lockheed Martin’s production system stronger and able to handle more. The second effort goes into speeding up how new digital and physical technologies get used in all mission solutions and inside operations. The final initiative is about growing partnerships with other countries.

The company’s stock has risen 6.88% in the last six months and gone up around 13% in the past nine months but where is it going over the next decade?

Lockheed Is Going Global 

Lockheed Martin newest partnership with Norwegian companies is a splash in the proverbial ocean that is very likely to bring big changes to the aviation and defense sectors in Norway. The agreement is small and valued at just $8 million over 24 months but it’s a step in the right direction for a management team that’s looking to go global.

The partnership would make Lockheed Martin’s global supply chain stronger and, at the same time, support the security ambitions of the Norwegians.

Other growth vectors on the horizon include the launch of its Tactical Satellite, called TacSat, which is designed for intelligence, surveillance, and reconnaissance purposes. It is planned to go into space next year using the Firefly Aerospace Alpha rocket.

TacSat will try out new sensing and communication tech, both of which are crucial to military training and connecting different combat systems. The satellite’s mission to show special abilities in space is a big step ahead for tactical space missions. 

And when it comes to the high seas, Lockheed Martin received a big contract extension worth $245 million from the U.S. Naval Sea Systems Command (NAVSEA) for ongoing work on the MK-48 Guidance and Control (G&C) Mod 7 program.

The agreement includes purchases from the U.S. Navy, Royal Australian Navy, as well as the Foreign Military Sales program, and is expected to wrap up near the end of 2027. The big extension shows how important Lockheed Martin is in giving modern technology to naval forces around the world.

Looking ahead, Lockheed Martin is continuing to advance with the soon-to-happen launch of the LM 400, which is a versatile and strong mid-size space vehicle. This all-purpose craft is planned to be launched in the first half of the year 2025 using another Firefly Aerospace Alpha rocket.

The LM 400 aims to serve many different purposes for military, civil, and business missions. After doing many good tests, the LM 400 is ready to change things a lot. It can give different choices that fit any kind of orbit and mission.

Financial Growth and Forecast

Lockheed Martin managed to eek out a 1.3% hike in net sales yoy resulting in $17.10 billion accruing to the top line. Gross profit also saw an increase, rising by 3.4% to reach $2.12 billion versus the same time last year.

Consolidated operating profit also went up 4.8% to hit $2.14 billion while net earnings were $1.63 billion and EPS climbed by 1% from last year to $6.84.

Lockheed Martin’s liquidity is hard to match with cash and equivalents of $3.15 billion. This was more than double the $1.44 billion it had at the end of 2023. So too total current assets rose to $23.21 billion by the close of the third quarter of 2024 from only $20.52 billion on December 31, 2023.

Management is also clearly upbeat having revised its full-year 2024 forecast. Seeing good results so far this year, the company now expects higher numbers for sales, operating profit, EPS, and free cash flow. The forecast shows the company can achieve even stronger financial results in the next few quarters.

As thanks to shareholders for their ongoing support, Lockheed Martin’s Board of Directors has decided on a 5% rise in its quarterly dividend. This is the 22nd year straight that dividends have gone up, showing the company’s dedication to creating value for investors while keeping strong financial health.

Where Will Lockheed Martin Stock Be in 10 Years?

Over the next 10 years, Lockheed Martin is likely to rise to $562 per share according to a 10-year discounted cash flow forecast analysis with a growth exit.

While it’s true that over the next half decade, revenues are expected go up by just 3.8% annually and on the bottom line by 0.8% the reality is Lockheed is a monster cash flow generator and any bullish optionality that is realized should produce some surprises to the upside.

For this fiscal year, analysts are looking to a 5.4% revenue climb compared to last year, taking the top line to $71.24 billion and earnings per share to as high as $26.70.

Looking to the next fiscal year, which finishes in December 2025, experts expect Lockheed Martin’s revenue to go up by 4% from last year, making it $74.10 billion. Also, the EPS is predicted to increase by 4.3%, becoming $27.83.

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